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The Co-Founder Mythology

Both Sides of the Table

If you do decide to go down the 50/50 route, please at least consider: Make sure you have founder vesting for both of you. It is not uncommon to see startup founders walk before raising capital and take large pieces of equity with no vesting. I wrote about many of the early-stage startup mistakes here.

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First Round Funding Terms and Founder Vesting

Both Sides of the Table

There was one firm that offered me an entrepreneur friendly “vanilla&# term sheet and that was True Ventures , which is why I believe they are attracting great early-stage entrepreneurs. One very important item from Chris’s original post that wasn’t picked up by Fred or Brad is founder vesting.

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Most Common Early Start-up Mistakes

Both Sides of the Table

This is a BIG mistake many early stage companies make. Start building your team early. Founder vesting. Yesterday I wrote a blog posting on founder vesting (see here ). You should implement restricted stock with vesting at the earliest stages in your company -even before the VC’s ask.

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The New Deal – A Founding CEOs Value is Non Linear

Steve Blank

The customary vesting model has founders vest their stock over 4-years , and when the founding CEO gets in over their head the VC’s bring in professional management. They also know that most founding CEO’s don’t scale past the early stage. More often than not the founding CEO leaves the company.

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Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

This includes agreeing on how you will handle personal investments in the business, but it also includes many other topics such as foundersvesting schedules and voting rights. However, there is a lot to be said for keeping things simple during the early stage of a startup. warrants or discounts).

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The Equity Equation

venturehacks.com

That’s a core argument for early-stage high-value angels, seed funds, and Y Combinator. Ask the Attorney” – Founder Vesting. That’s true – someone who can help you fundraise in the next round can easily make up for the added or extra dilution from the current round. Every post in one book.

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How to pick a co-founder

venturehacks.com

Breakups are hard If you’re going to fall out with your co-founder, do it early, recover the equity into the option pool to keep the company going, and recruit someone else great to fill the missing slot. Build in founder vesting (a.k.a. How to build your core team for early-stage startup?

Cofounder 101